KBR Inc. (KBR): Today's Featured Diversified Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

KBR ( KBR) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day down 0.2%. By the end of trading, KBR fell 74 cents (-2.6%) to $27.82 on average volume. Throughout the day, 1.6 million shares of KBR exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in price between $27.63-$28.68 after having opened the day at $28.37 as compared to the previous trading day's close of $28.56. Other companies within the Diversified Services industry that declined today were: HMS Holdings Corporation ( HMSY), down 23.4%, Regis Corporation ( RGS), down 16.3%, Innovaro ( INV), down 16%, and VistaPrint ( VPRT), down 13.2%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

KBR, Inc. operates as an engineering, construction, and services company worldwide. KBR has a market cap of $4.35 billion and is part of the services sector. The company has a P/E ratio of 21.6, above the average diversified services industry P/E ratio of 9.4 and above the S&P 500 P/E ratio of 17.7. Shares are up 2.5% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate KBR a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates KBR as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the diversified services industry could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the diversified services industry could consider ProShares Ultra Short Consumer Sers ( SCC).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

Alaska Air, Corcept Therapeutics, First Solar: 'Mad Money' Lightning Round

Markets Focus on Business: Cramer's 'Mad Money' Recap (Monday 8/28/17 )

14 Stocks That Could Skyrocket From Trump's Border Wall With Mexico

These Stocks Are Ready to Reverse Course